RO labour minister promises to raise child allowances and pensions “responsibly”

Romanian labor minister Violeta Alexandru will promote a proposal to increase the child allowances to be discussed by the Government next week.

She will also coordinate with finance minister Florin Citu to decide how much the pensions can rise in September.

The child allowances will not double, as voted by lawmakers, but in line with the resources, Alexandru said in an interview for B1 TV, quoted by Agerpres. The 40% pension hike, approved by the Parliament, is not possible either, she added.

Minister Citu promised to come up with an alternative proposal after the budget execution for the first half of the year.

The Finance Ministry should publish the budget execution for the first half on July 25 or after. Thus, the Government could take both decisions (on child allowances and pensions) next week.

The decisions are important not only for electoral purposes (the opposition Social Democrats press for full enforcement of the hikes), but also for the investors’ sentiment. All three major rating agencies expect corrective measures and fiscal consolidation policies from the Government for not downgrading the country’s sovereign rating to the junk category.

(Photo: Violeta Alexandru/ Facebook Page)